Nvidia is the market leader for GPUs, and its revenue numbers reflect that. Its data center division, which supplies GPUs to data centers, reached new record highs in revenue every quarter of 2023 and 2024. In Nvidia's calendar-year Q4 2024 earnings report, data center revenue was 3 times higher than that of AMD, Intel, and IBM combined.
AI models could also become more efficient, and training could become cheaper due to advances in distillation, showcased by DeepSeek. In that case, they might not need the same level of computing resources. While that's good news from a technological perspective, it would also reduce data center needs.
Even if efficiency breakthroughs continue, data centers could still be a large source of revenue for AI companies. Cheaper AI would make it easier for companies to integrate AI throughout the economy, which would generate significant data center demand. But the explosive growth some companies, most notably Nvidia, have seen in recent years might still slow down.